JACKSONVILLE, Fla. — You might be counting down the days till retirement, but also may be thinking twice because of the stock market tumble. We sat down with our consumer expert Clark Howard to find out how to protect your investments and retirement.
“It makes you sick to your stomach when you open statements,” says Clark.
Though it may seem difficult to avoid reviewing your statements and investments, Clark suggests backing off for now.
“Remember what you’re trying to do, which is build long-term financial security,” says Clark.
His biggest piece of advice is don’t let the market’s ups and downs deter you from continuing to make contributions toward your retirement. Clark says that’s especially true for anybody under 45 years old.
“What’s going on right now with investments is actually to your advantage,” says Clark. “Because that means if you stay the course, and you put money in your 401(k) plan or your IRA or your regular investment account, every single pay per year, every single month — then you’re buying everything on sale right now, because investments don’t just go up, and they don’t just go down.”
Clark says the bottom line is to know that you’re trying to make money for down the road, not for now.
“Things will recover,” says Clark.
Clark went on to say that even though it may sound odd, this is actually a good time to increase the percentage of your pay that you’re putting into a 401(k).
He says that the more money you put in while stocks are depressed, the more money you’ll end up with decades later.
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